Media agency Magna Global says worldwide ad spending growth has slowed “significantly” in the second half of 2022 amid “global economic uncertainty.”
The Interpublic Group division released a winter update report for the global advertising market on Dec. 4, predicting media owners will see ad revenues rise 5 percent year-on-year to $833 billion. That will be down on 7 percent growth in 2022 to $795 billion, and marks a revision down from Magna Global’s summer report earlier this year.
“This new 2023 growth forecast is 1.5 percentage points below Magna’s previous forecast (June 2022) due to the deteriorating macroeconomic outlook,” the media agency reported. The winter update said traditional media companies will see publishing and TV ad sales fall by 3 percent and 4 percent respectively, while audio advertising, driven by new digital formats, will be up 1 percent year-on-year, or remain stable.
And out-of-home ad revenues will grow by 6 percent to reach almost $32 billion, just above pre-COVID levels. Elsewhere, digital media advertising sales will grow by 8 percent to $557 billion dollars, or around 65 percent of total ad sales.
TV advertising will see continued erosion in linear viewing, down 5 percent to 15 percent, depending on audience targets and markets. Magna Global also said the U.S. market growth is forecast to rise 4 percent to $330 billion, due to weak demand and the lack of cyclical ad spending.
Excluding cyclical and political ad dollars, advertising spending will grow by 6 percent next year as the media agency expects the market to recover in the second half of 2023.